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www.wavteq.com | www.incentivesmonitor.com | www.fdiaccounting.com company/wavteq @wavteq 1 Global Investment Trends fDi Forum Presentation by Henry Loewendahl, CEO WAVTEQ September 24, 2015

Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

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Page 1: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

www.wavteq.com | www.incentivesmonitor.com | www.fdiaccounting.com

company/wavteq @wavteq

1

Global Investment Trends fDi Forum

Presentation by Henry Loewendahl, CEO WAVTEQ

September 24, 2015

Page 2: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

What is the role of FDI in the world economy?

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Page 3: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Role of FDI

• FDI is the defining feature of a multinational enterprise

10/13/2015

World GDP

World R&D spending

World Trade

R&D employment (USA)

28%Top 200 MNEs

50%/67%Top 700 MNEs

70%Top 500 MNEs

80%All MNEs

Page 4: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Is global FDI in growth or decline?

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Page 5: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Greenfield FDI - declining

• FDI expected to be 15% lower than 2014

• FDI down in every region of world

• Most industries down

• Ren. Energy growing (after big declines)

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Page 6: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

M&A - Growing

• Global M&A over $3 trillion by end August

• Cross-border M&A 2nd highest ever since 2007

• Record M&A levels in North America, AsiaPac in many sectors including healthcare, tech & telecom

• Driven by:

– Consolidation (semiconductor, telecom)

– Buy or be bought (pharma)

– Technology disruption (media & entertainment)

– Volatility (oil & gas)

• Enabled by cash balances and low interest rates and encouraged by tax structures6

Page 7: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Overall assessment

• UNCTAD estimates FDI flows will increase by 11% in 2015 to $1.4 trillion

• EIU forecasts FDI to exceed $1.6 trillion in 2015 with 14% growth

=Overall FDI flows to increase in 2015

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Page 8: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

The best performing country for Greenfield

FDI in 2015 YTD is?

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Page 9: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

INDIA

• Greenfield FDI already 40% up

• Major mfg projects from Sun Edison, POSCO, Cricket, Vedanta, Trina Solar, Toyota, Zhejiang Leo, J&J, etc.

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Page 10: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Country ranking greenfield FDI

20141. China2. US3. UK4. India5. Mexico6. Vietnam7. Malaysia8. Canada9. Brazil 10.Egypt

2015 (Jan-July)1. US2. India3. China4. UK5. Mexico6. Indonesia7. Vietnam8. Australia9. Canada10.Spain

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Page 11: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

What % of FDI is R&D?

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Page 12: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Role of R&D

• 2.3% of OECD GDP

• 2.9% of total FDI capital investment

• 5% of total FDI jobs

Since 2008, the number of US patents granted to foreign companies has exceeded the number granted to US companies every year with the gap widening

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Page 13: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

What is the leading city in the world for

attracting FDI in R&D?

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Page 14: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

City ranking greenfield FDI # projects (location)

20141. Singapore2. Shanghai3. Bangalore4. Dublin5. Beijing6. Hyderabad7. Pune8. Edinburgh9. Montreal10.Belfast/London

2015 (Jan-July)1. Bangalore2. Singapore3. Shanghai4. Pune5. Dublin6. Chennai7. Paris8. London9. Hyderabad10.Wroclaw

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Page 15: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

What is the leading city in the world by # home-

grown companies investing overseas in R&D?

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Page 16: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

City ranking greenfield FDI # companies (source)

20141. Tokyo2. Paris3. NYC4. London5. Munich 6. Beijing7. San Jose8. Stuttgart9. Seoul10.San Francisco

2015 (Jan-July)1. London2. Tokyo3. NYC4. Paris5. Munich6. Stuttgart7. San Francisco8. Beijing 9. Chicago10.Austin

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Page 17: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

What is the best city in the world for biotech R&D?

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Page 18: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Biotech R&D: cost-quality competitiveness

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Page 19: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Biotech R&D: Ranking

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Page 20: Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational enterprise 10/13/2015 World GDP World R&D spending World Trade R&D employment (USA)

Thank you!

• Dr Henry Loewendahl, Founder & CEO, WAVTEQ Ltd

• E-mail: [email protected]

• Skype: hloewendahl | Linkedin: Henry Loewendahl

• Cell: +447557965393

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